BC Hydro announces third quarter results
VANCOUVER – BC Hydro today announced its third quarter financial results [PDF, 332 Kb] for fiscal 2009, reporting a consolidated net income of $159 million for the quarter ended December 31, which was $29 million lower than the previous year.
"Overall, our results for this quarter are in line with expectations," said Bob Elton, BC Hydro President and CEO. "While the demand for electricity from the industrial sector decreased from the previous year, results from our trading business have been very positive in the quarter. We also remain committed to our long term capital improvement plan of upgrading aging assets, improving system reliability and expanding generation and distribution capacity."
Key financial highlights include:
- Domestic revenues were $763 million – $11 million lower than the previous year, as a result of decreased revenue from the industrial sector due to reduced operations in the forestry sector.
- BC Hydro experienced a 16 per cent decrease in hydro generation over the same period in the prior year due to lower water inflows and system constraints, causing BC Hydro to purchase higher-priced market energy to meet domestic requirements. In fiscal 2008, BC Hydro experienced high water inflows and was therefore able to increase low-cost hydro generation and reduce market energy purchases, resulting in a lower cost of energy.
- Operating costs were $39 million higher than the previous year, primarily as a result of demand side management activities, the smart metering and infrastructure project and higher maintenance costs to address equipment failures at the G.M. Shrum Generating Station. BC Hydro also undertook higher levels of work in vegetation maintenance to improve system resiliency, and system restoration activity due to snow and wind storms.
- Capital expenditures of $379 million in the quarter were $89 million higher than the previous year, primarily due to reinforcement work on the Vancouver Island transmission connection to meet growing customer demand and system improvements to the distribution network.
Source: BC Hydro News
Contact:
Dag Sharman
BC Hydro Media Relations
Phone: 604 623 4022